Published date: 12/18/2024

Question

We pay our truck drivers more than the required prevailing wage amount (including the fringe benefits). Where do we report the “overage”? We are in California and I understand that the wage amount and the fringe benefit amount needs to be met separately.

Answer: When you are entering truck drivers onto your certified payrolls, it is crucial to record the payrolls based on the actual amounts paid to the employees.

For instance, if the prevailing wage is $20 per hour with an additional $8 per hour for fringe benefits, but you are paying your employees $25 per hour with the same $8 per hour for fringe benefits, you should report the $25 per hour wage along with the $8 per hour fringe benefits.

The key point to remember is that you are certifying under penalty of perjury that you are entering the actual wages and benefits paid to the employee – not just the prevailing rates. When you see a prevailing wage and fringe rate on a wage determination for the classification you employ, it is not saying that you can ONLY pay and report that exact amount, it is saying that you must pay report AT LEAST that amount. This ensures accuracy and compliance with payroll certification requirements.

Question

If a truck driver is delivering stone and removing soil from the project site but never steps foot outside of the vehicle (someone else loads/ unloads), do they need to be included in the certified payroll?

Answer: This is another great question. When a truck driver is performing duties on the site of work and is onsite for more than a very short period of time (de minimus) then they are considered a laborer or mechanic for that work. Based on your example of delivering stone and then removing spoils from the project, this work would likely be considered “covered work” under Davis-Bacon on projects. However, as always, this specification could vary based on the state regulations that you are working in.  

Question

If an owner of a single member LLC performs work on a project operating a piece of equipment, how should they fill out a certified payroll report (CPR) for themselves? Considering owners pay taxes at the end of the year, would they need to pay themselves in the form of an owners draw for the hours performed working on site? If that were the case, wouldn’t this make them unable to show with-holdings on the CPR because of how they are taxed? Is there another form for them to fill out?

Answer: I always wondered if we might get this type of question. Here’s the breakdown: an individual who is performing the duties of a laborer or mechanic would be required to submit their own certified payrolls for the work on the project – even if they are the owner. They will be required to determine the classification for the work they are performing on the project, enter the hours worked on the WH-347 form (or an electronic CPR if they are using a cloud-based service like one of LCPtracker’s solutions), and finally enter the wages for the work performed. If they are paying their taxes on a quarterly/annual basis, then they would enter this explanation in the comments section of the payroll.

.

.

Have a burning question about labor compliance that you’ve been eager to ask? Submit it anonymously to our live submission form and you might just see it answered in a future entry of our monthly Ask the Expert series! You can also check out our past entries here.

Want an opportunity to get questions like these and other topics answered in person? Check out our events page for our educational Spark Seminars. These are perfect opportunities for you to hear from industry experts and expand your prevailing wage knowledge.

.

.

These materials are being issued with the understanding that LCPtracker is not engaged in rendering legal or other professional services and is providing these for informational purposes only. If legal, accounting, or tax expert assistance is required, the services of a competent legal, accounting or tax professional should be sought.